BLUE LANTERN LEVEL 3: PRE-LICENSE END USE CHECK OF

UNCLAS ANKARA 000502 SIPDIS SIPDIS DEPARTMENT FOR EUR/SE AND PM/DTTC E.O. 12958: N/A TAGS: KOMC ETTC MASS TU SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END USE CHECK OF APPLICATION 05-981743 REF: SECSTATE 217260 ¶1. Begin Summary: We met twice in January 2006 with officials from Turkey's Mechanical and Chemical Industries Corporation (MKEK) to discuss order/contract number 03361, per reftel, and confirmed that MKEK's intended purchase of approximately 200 handguns from Smith and Wesson appears to be a standard transaction. Despite an awkward initial meeting, Embassy officers received satisfactory answers to their questions during a subsequent meeting. End Summary. ¶2. During a Jan. 6 meeting, MKEK acting procurement chief Mustafa Aycicek was not very forthcoming. In fact, Aycicek appeared nervous and refused to answer basic questions. Aycicek did, however, show us a copy of the proposed handguns deal with Smith and Wesson, and stated that the handguns were not intended for any specific government organization. ¶3. In a follow-up meeting on Jan. 23, Akif Akgul, MKEK's Director of Marketing and Export, and Aynur Ceylan, an MKEK Export Manager were very forthcoming. According to Akgul, MKEK is 100 percent owned by the Turkish government, and receives almost all of its orders/contracts from the Turkish Ministry of National Defense (MND). MKEK Marketing/Sales officials said the company sells a small amount of controlled goods (such as explosive survey charges) to civilians and civilian firms, but that goods such as the Smith and Wesson handguns could only be purchased by a very select few people in Turkey -- namely those in the military or internal security, as well as a limited number of civilians with permits -- after strenuous background investigations. The Marketing/Sales team emphasized that MKEK keeps good records on any contracts/purchases that involve firearms. ¶4. MKEK has been in business since 1950, and the main MKEK facility on Tandogan Square appears to have good on-site security. The company appears to have the necessary firearms license and import permits required. The MKEK officials commented that U.S. export regulations, such as those involving the Smith & Wesson handguns, were too stringent and hurt the ability of U.S. companies to compete for Turkish MND contracts. ¶5. Based on the site visit, the viewed documentation and the meeting with MKEK Marketing/Sales officials, we believe the proposed sale meets the appropriate end-use standards. WILSON